BAE hunts new US chief after 'surprise' retirement

Linda Hudson, the BAE Systems US chief who became the first woman to head a
big American defence business, has surprised analysts with the news that she
will be retiring early next year.

A British industry team led by BAE Systems has completed the final tests on the ejection or escape system for all variants of the F-35 Lightning II combat aircraft. The system has been certified as safe for flight after a series of rigorous tests. The escape system, used in emergency situations, ensures pilots can eject safely and will be fitted to all 3000+ F-35 aircraft which will be flown by armed forces across the globe.Photo: BAE / PA

Ms Hudson, 62, who has been with BAE for seven years and in the defence industry for more than 40, told staff in an emailed message that after “countless hours” of consideration, she had decided she had “many more things I want to do professionally and philanthropically”.

But her looming departure by March 31 2014, at a time of savage spending cuts in the US defence sector, was regarded by some analysts as unplanned.

Zafar Khan, at Societe Generale, said: “It is a surprise. It wasn’t flagged at all. It’s a sensitive time because of the cuts and the fact that she’s leaving and they don’t have a replacement is surprising.”

Ms Hudson, who was paid £1.8m last year, has been running the US wing since 2009, leading a division with 40,000 staff and annual sales of $12.8bn (£9.5bn).

Eyebrows were raised earlier this year when it emerged that she uses the company jet for all of her holidays after security advisors told BAE that it was too dangerous for her to fly on commercial airlines. The flights cost BAE £66,300 last year.